Prague Economic Papers 2003, 12(2):99-120 | DOI: 10.18267/j.pep.208

Czech economy in 2002: record-low inflation

Kamil Janáček, Eva Zamrazilová
Komerční banka, a.s., P.O.Box 839, Politických vězňů 11, CZ - 114 07 Prague 1 (e-mail: kamil_janacek@kb.cz; eva_zamrazilova@kb.cz).

Gross domestic product continued to grow in 2002, faster than in the economies of most of the Czech Republic's major partners, albeit at a slower pace than in 2001. The major driving force of economic growth was private consumption, followed by government consumption. Investment demand registered a slowdown as an indirect result of weak foreign demand.

2002 was the year of record-low inflation in the history of the Czech Republic - at the end of the year, the consumer price index stood at 0.6 %. During 2002, nominal appreciation of the Czech currency accelerated - the koruna appreciated against the euro by almost ten per cent. The labor market was severely hit by the general economic slowdown and the unemployment rate anew reached the record-high level at the end of the year.

Keywords: Czech economy, labour market, monetary policy, external balance, world economic growth
JEL classification: E20, O11, O52

Published: January 1, 2003  Show citation

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Janáček, K., & Zamrazilová, E. (2003). Czech economy in 2002: record-low inflation. Prague Economic Papers12(2), 99-120. doi: 10.18267/j.pep.208
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